UBNT - Short interest/Grizzlies

I think part of the reason that UBNT’s share price has held up well despite some volatility in the Nasdaq is that there has been a good amount of short covering in the last few weeks. Shares short peeked at around 11M shares on 10/13 and declined to 10.2M shares on 10/31 and then further to 9.5M on 11/15. With the float at 21.5M (looking only at Pera’s shares), the shares short still represent 44% of the float. Shares short are still elevated and I would except more short covering as they realize that UBNT is not a fraud and wanting to take a tax loss in 2017 before the year ends.

See short shares detail here: http://www.nasdaq.com/symbol/ubnt/short-interest

Speaking of the float and Pera’s shares, there is recent news that the the fellow Grizzlies owners are exercising their option to buy the rest of the team from Pera, which he can then accept or he can match their valuation and buy them out. Obviously, if he buys them out, he many need to come up with more funding (especially since valuations of NBA teams have skyrocketed). I believe he has mentioned that this could be achieved by using his shares as collateral and not selling further. Although with UBNT’s share price near all time highs, he is in a better position, should he need to sell more.

See more info in the 2 links below:




If he were to decide to sell his stake in the Grizzlies and buy shares of Ubiquiti with the proceeds, I am guessing he could land another 1-2 million shares and increase his stake, getting closer to being able to take the company private again at a future point.